# Agencies Clarify TDY Travel Compensation

Government agencies have clarified that travel compensation for employees transitioning directly from Temporary Duty (TDY) assignments to annual leave is limited to reimbursing travel costs equivalent to returning to the home duty station, not the full travel time or expenses to the leave destination. Agencies are responsible for covering travel expenses only up to the authorized TDY return trip, while any additional travel costs beyond the home station are the traveler's responsibility. Proper use of the Defense Travel System (DTS) and adherence to displaced travel day rules are essential for accurate claims and reimbursement processing.

- Procurement and travel management professionals should ensure travel policies and DTS configurations reflect this limitation to avoid overpayment.
- Contractors supporting travel systems or agency travel offices may need to update training and guidance materials to align with clarified reimbursement rules.
- This clarification impacts budgeting and cost forecasting for travel-related contracts and services.
- Organizations managing government travel should emphasize compliance with these rules to reduce audit risks and improve cost control.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 25, 2026

### Key Quotes
> Yes, but the agency only has to cover the original TDY to home station flight cost. If it costs more from vacation to home the traveler is responsible.
> — Commenter

> Your TDY isnt done until youre back at home station. Claim the hours on your return trip not to exceed the six.
> — Original poster

### Sources
- [Travel Comp Question](https://www.reddit.com/r/FedEmployees/comments/1wpm27q/travel_comp_question) - reddit-fedemployees